Stock Market Commentary: Rally and Bluster

A sharp rise in consumer confidence set the stage for a mammoth rally. All that was missing was some matching volume although volume did climb to register an accumulation day. The Nasdaq gained some momentum off the S&P with a relative strength shift in its favour. Not to mention a close above the 200-day MA.


The Russell 2000 was able to make its own momentum gain over Tech, leaving indices in their most bullish alignment: Small caps > Tech > Large Caps.


The S&P - although the weakest of the indices today as money rotated into more speculative indices - was able to dig heels in at the 20-day MA.


But even with all of the gains, supporting technicals for each of the indices are weak and didn't improve on the back of Tuesday's gains. But, buyers are in control and unless there is a collapse tomorrow they remain in control.

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.

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